Rising global prospects for qualified wealth managers

According to the Financial Times, global banks are seeing opportunities to grow in Asia, despite low margins and fierce competition. The latest CapGemini World Wealth Report confirms that Asia-Pacific surpassed North America for the first time to become the region with the largest amount of High Net Worth Individual (HNWI) wealth.

Asia-Pacific has been building this moment for years, first overtaking North America in HNWI population in 2014. Now it has subsequently increased its population lead (with 5.1 million HNWIs, compared to North America’s 4.8million), while also pulling ahead in terms of wealth ($17.4 trillion versus North America’s $16.6 trillion). Japan and China emerged in this report as engines of global growth, driving close to 60% of the global HNWI population growth in 2015.

The market is growing as medical advances and improved lifestyles and life expectancies throughout the world are on the rise. Today a newborn child is expected to live for almost 80 years as opposed to an average of 50 years nearly 60 years ago. As people live and work longer they are more likely to need a wealth manager’s support to plan out their investments and retirement schemes. Qualified, trusted professionals are essential to meet the demands of this growing investment market to encourage people to construct their financial plans and help them to take their retirement schemes seriously well in advance of the end of their careers.

The CapGemini report found that financial planning expertise is among the most important elements HNWIs seek in a wealth management provider (40.3%), along with deep investment access (39.8%) and investment advice (47.4%). Both younger and holder HNWIs value these top three services highly, while younger HNWIs also express greater interest in more specialised services, including credit solutions and business expertise.

Wealth management delivered with a face-to-face approach is well suited for meeting all of these diverse HNWI needs. Human advisors are also currently more skilled at understanding HNWIs personal and financial goals and thereby matching them up with suitable investments. However, there is no doubt that there is a place in the market for innovative digital technologies, or “robo advice” and real, live wealth manager advice. The best approach for the sector is when both of these solutions exist side-by-side.

Ethics, professionalism and trust are key requirements when engaging with clients and the Chartered Institute for Securities & Investment (CISI) has been promoting integrity and ethics in financial services since its foundation in 1992, celebrating its 25th anniversary this year. The CISI was the first professional body in the world to require new UK capital market entrants to pass an integrity test and this was extended to cover members in Ireland, Europe and North America. 

The CISI introduced this requirement to ensure that exam candidates in capital markets in these jurisdictions who would be working directly with firms and clients realise the importance of acting with integrity at all times, placing integrity before and above profitability.

A qualified, trusted wealth manager will have specialist knowledge and expertise to advice clients on the essential of financial planning, private client asset management, fund management, advisory functions and investment analysis from a global perspective. The CISI Chartered Wealth Management Qualification can offer an excellent level of expertise for those keen to enhance their skills and competence in this area, available from the Chartered Institute for Securities & Investment (CISI). 

It is a postgraduate level specialist qualification, encompassing the breadth of knowledge needed to provide a high quality service to clients. It is a progressive qualification, comprised of three units: Financial Markets, Portfolio Construction Theory and Applied Wealth Management. It provides an excellent foundation in economics and interpretation of economic statistics, financial statements, investment analysis, portfolio construction and applied wealth management.

The CISI’s Chartered Wealth Management Qualification is highly regarded and has been developed in consultation with leading stockbrokers, investment banks and industry trade bodies, recognised by financial services recruiters as the best qualification for roles in wealth management. 

With people living longer and the growth in the HWNI market globally, the role of the wealth manager is more crucial than ever. Qualified, trusted professionals are essential and the CISI Chartered Wealth Management Qualification can open the door to global opportunities for a bright career in this area.